Starting July 1, millions of households across Australia can enjoy something that once sounded like a joke, three completely free hours of electricity every single day. The scheme is called Solar Sharer, and surveys suggest nearly half of Australians are already keen to give it a try.
How the Solar Sharer free electricity scheme works
Solar Sharer is a government regulated offer that energy retailers will make available in Queensland, New South Wales and South Australia. Victoria will get its own version, called the Midday Power Saver, from October 1. The free window runs from 11am to 2pm in New South Wales, Queensland and Victoria, while in South Australia it runs from noon to 3pm. You don’t need rooftop solar panels of your own to take part, you just need a smart meter. Households without one can usually request a free installation from their retailer.
Energy Minister Chris Bowen explained the thinking behind the initiative.
Chris Bowen, Australia’s Energy MinisterWhen the sun is shining at its brightest and power is negative or at its cheapest, then consumers, whether they have solar panels or not, whether they be renters or not, should be able to benefit from that.
There is a daily cap of 24 kilowatt hours, roughly what a five person household uses in a day. The not for profit group Renew points out this is a generous allowance, since most households use somewhere between 10 and 20 kilowatt hours daily.
Who benefits the most from the free power window
The Australian Energy Council notes the scheme works best for households with batteries, electric vehicles or appliances that can easily be shifted in time. People who work from home are also well placed to make the most of it. The trick is simple, shift as much electricity use as possible into that free three hour window.
- Charge your home battery or electric vehicle during the free window
- Set your hot water system to run during that time
- Run the air conditioning or heating earlier, so your home stays cool or warm later using less energy
- Time your dishwasher, washing machine or dryer to start automatically within the three hours
Why Australia has so much cheap solar power to share
Behind the initiative lies a rather pleasant problem, Australia produces so much solar energy that it doesn’t always know what to do with it. Roughly one in three homes in the country now has solar panels, and at times solar power covers up to half of total demand on the country’s biggest electricity grid. Wholesale prices have repeatedly turned negative in recent months, meaning supply is outpacing demand. In states with especially high solar output, such as South Australia, generation can exceed what the state actually needs, with the surplus exported, stored in batteries or simply wasted.
The energy regulator explains that if enough consumers shift their usage toward midday, the benefit will be shared by everyone.
Shifting more demand to the middle of the day would lower the cost of the electricity system for all consumers as we don’t need to build as much generation or poles and wires to meet the evening peak.
Will it actually lower electricity bills
Solar Sharer isn’t necessarily the cheapest option for every household, since it works more as a benchmark price than a competitive plan, and retailers may charge slightly more outside the free window to cover their costs. Independent energy consultant Tim Forcey notes that simply running the washing machine during the day isn’t always enough to make it worthwhile.
Tim Forcey, independent energy consultantPeople need to assess if they can get their money’s worth during the free period.
Even so, the philosophy behind the scheme remains a hopeful one. The more consumers learn to make the most of the midday sun, the more sustainable the country’s entire energy system becomes, with clear benefits for both wallets and the environment.
